Prominent businessman, Marc Houareau, voices out on social
media against the 13th month salary about to be forced on the private
sector by the Government.
“If this bill passes, both PL and LDS will be responsible
for many jobs that will be lost in Seychelles.
There is an air of entitlement in this country that needs to
go away but it continues to linger because of politicians whose judgments are
blinded by trying to win votes. Most do not understand how businesses operate,
let alone the difficulties of doing business in Seychelles today. Competition
is global today, and margins are being eroded year after year. Adding another
unnecessary cost burden instead of addressing the minimum wage issue to
alleviate poverty in the country is a huge mistake. This is not the way forward
to ensure future employment and to grow our tax base. This political expediency
bill will simply kill jobs in the country and wages will be frozen for many
workers. Adding 8-plus percent to a company's operating cost can only cause
prices to escalate as many will have to increase their prices in order to
afford this new expense, and the customer/consumer will feel the pinch even
more.
Lest we forget, former President Rene also dropped a similar
bombshell many years back with his 5-year tenure compensation package which
until today, remains a huge burden to most private companies in the country as
it became an overnight, unplanned liability on their balance sheet. Now add the
highest business tax (30%) in the region, VAT, CSR, and other increasing
operating costs, and it does not paint a rosy picture for private sector growth
in the coming years.
Meanwhile, the Government continues to expand and overspend,
continues to compete with the private sector, and has doubled its budget in 5
years to the tune of SR 7.9 billion. And let us not forget our local and
foreign debt of some SR 10 billion which seems to be forgotten by many in
Government. But who knows, maybe just before the next election, our smart
politicians will come back to the Assembly to propose a 14th month salary as by
then, the voters would need a new incentive.”
Source: Facebook
